HERSHEY'S MILK & MILKSHAKES - Nationwide Candy LLC

HERSHEY’S MILK & MILKSHAKES
NACS Chicago
October 2011

Convenience Store Channel
Geography
Product
Volume Sales
(Gallons)
Volume Sales Chg
YAgo (Gallons)
Volume Share of
Flavored Milk and
Milkshakes
Unit Sales
Chg YAgo
Dollar Sales
Chg YAgo
ACV
Wtd
Dist
Hershey Flavored Milk & Milkshakes 58,927 5,025 5.3 26,802 29,510 28.8
NORTHEAST
LOL/Deans Flavored Milk & Shakes 171 171 0.0 588 942 0.3
Nesquick Flavored Milk & Milkshakes 113,421 (128,303) 10.2 (519,997) (1,008,444) 80.3
Private Label Flavored Milk &
Milkshakes
365,983 (21,525) 32.8 (26,577) 10,712 15.7
Total Flavored Milk and Milkshakes 1,115,380 (172,088) 100.0 (617,917) (983,318) 80.3
Hershey Flavored Milk & Milkshakes 169,911 58,718 2.6 313,165 537,335 20.8
TOTAL U.S.
LOL/Deans Flavored Milk & Shakes 483,895 41,470 7.4 124,363 230,269 4.6
Nesquick Flavored Milk & Milkshakes 650,743 (697,483) 10.0 (2,741,320) (5,507,799) 71.2
Private Label Flavored Milk &
Milkshakes
593,724 (50,069) 9.1 (106,540) (7,015) 3.0
Total Flavored Milk and Milkshakes 6,532,823 (802,356) 100.0 (3,048,458) (4,583,920) 71.2
All Scan last 23 wks ending Aug 7, 2011

The Hershey Brand Delivers Great Taste to the Convenience Store Consumer
Looking for a Flavorful Indulgent Drink
In a quantitative research study, Hershey outperformed Nesquik
with convenience store consumers who drink flavored milk/shakes
Hershey had a stronger equity around richness, thickness, chocolate, creaminess, and personal fit
% of Convenience Store Flavored Milk/Shakes Consumers Who Agree
Source: Proprietary Hood Research 2010

Hershey Brand Outperforms Nestle
in Confection Category
Hershey owns 5 of the top 10
Chocolate Brands
Nestle’s first brand is #23-
Butterfinger
Hershey Chocolate % of Dollars
Sales= 29%, Nestle= 6%
Hershey Chocolate % of Volume
Sales= 31%, Nestle= 7%
• The Hershey equity extends well beyond confections to other product lines
– Ice Cream
– Syrups Consumers indicate these products lend even more
– Cookies/Snackscredibility to Hershey’s line of Flavored Milk/Milkshakes
– Brownies
Source: IRI Current 4 Weeks Ending 1.22.2011

The Hershey’s Flavored Milk/Shake Consumer Fits Well
with the Convenience Class of Trade
• There are two key consumer segments that shop for
Hershey’s Single Serve Milk/Shakes in Convenience Stores:
1. Teens and young adults
• Skews more male (ages 16 – 24)
• Impulse driven (purchase and consumption)
• On-the-go lifestyle
• Disposable income
• Not calorie conscious
• Loves rich flavor and indulgence
• Sometimes seek a flavored milk/shake to accompany breakfast or
lunch
• Have an affinity to Hershey’s for chocolate equity and great taste
2. Older adults
• Consumption is for themselves, NOT their children
• Love drinking chocolate milk and shakes – always have
• Slight skew to blue collar
• Have a strong affinity to Hershey’s for heritage and love of the
brand
Source: Proprietary Hood Research 2010

Hershey’s Makes Splash with
New Package Design in 2012

New Hershey’s Milk/Shakes Label Design in 2012
• Conducted extensive qualitative and quantitative research in 2011 on the single serve milk
& milkshakes category (including comprehensive retail shelf/eye-tracking study)
– “Grab and go” mentality exists within the single serve beverage category in C Store channel among target
consumers (young males 16 – 24).
• They purchase by flavor (40%) followed by brand (25%) in both the C Store and grocery channels and their
purchases are impulsive
• Shelf impact and clear/immediate communication are imperative in the single serve beverage category
• Research identified opportunities to optimize Hershey’s Milk & Milkshakes package graphics
Hood Proprietary Consumer Research conducted by Inspire Group 2011
Hood Proprietary Consumer Research conducted by PRS April 2011
Hood Proprietary Positioning Research conducted by AMP October 2010

New Hershey’s Milk & Milkshake Label for 2012
• New Design
– Yields strong overall shopper appeal and aligns with the brand’s desired positioning -
appetizing, inviting, fun (statistically significant increase from 79% to 89% among young
male target and from 79% to 95% among target moms).
– Differentiates Hershey’s from competition at shelf
– Breaks through surrounding clutter in single serve shelf set
– Exceedingly personifies the personality of the package as popular, happy, classy,
energetic, and adventurous, which is more in line with the brand’s desired positioning -
without being too young.
• Consumer research indicated that young males believe Nesquik Bunny to be too
childish for them
• New Hershey’s design is more appealing and more fitting to their personality, age
and interests

PRODUCTS
• Chocolate Lowfat Milk
• Creamy Chocolate Milkshake
• Cookies n’ Crème Milkshake
• Strawberry Milkshake
• Lowfat Milk
Hershey’s Milk & Milkshakes
FEATURES & BENEFITS
• Hershey’s Brand
• Superior Taste & Quality
• Made with Real Sugar (No HFCS)
• Fresh Milk with Extended Shelf Life (120
days)
• New Package for 2012!
PACKAGING
• Single Serve 12 oz. Plastic Bottles
– CONSUMER RESEARCH PROVED 12 OZ IS
PREFERRED SIZE
DISTRIBUTION
• National
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